The role of cloud computing in addressing small, medium enterprise challenges in South Africa

This thesis was motivated by Roberts (2010) who found that 63% of SMEs in South Africa do not make it past second year of operation. To expand further on this problem, we reviewed literature to understand key business challenges experienced by SMEs in South Africa which contribute to this high failure rate. The challenges include red tape, labour legislation, lack of skills, lack of innovation, impact of crime, and lack of funds. The research project aimed to answer a key question: “How can information technology, in the form of Cloud Computing be used to address the challenges faced by small and medium businesses in South Africa?” To answer this question, data was collected from 265 SME companies and quantitatively analysed. It is important to note that the profile of SMEs targeted in this study are those that employed fewer than 200 employees, with a turnover of not less than 26 million rand per annum, and registered with South African Revenue Services (SARS) and also with the Companies and Intellectual Property Commission (CIPC) of South Africa. Over 60% of the firms that responded to the survey were in business for more than 10 years which means we are mainly dealing with data from businesses that have past the survivalist stage and are matured businesses. These are businesses that can share their experiences and challenges they faced throughout their journey. The profile of SMEs in this study should not be confused with that of Very Small Medium Enterprise Businesses. The questionnaire was designed to address four themes being the Demographic profile, SME Business Environment, Threat of Survival, and lastly Technology Adoption. Key finding in this research is that 60% of the panellists stated that red tape is the overriding challenge that small businesses contend with. 67% of the panellists confirmed that they have not invested in their businesses in the past year; and 53% stated that they have not applied for finance from the bank for fear of being rejected. Only 30% of the SME market were found to use enterprise resource planning (ERP) and 62% do not have their own IT department. Of great concern is that 65% of the panellists have experienced server down time at least once in the past year. Inability to predict the rising IT costs in a firm has been cited as the main concern when running IT on premise. The cost predictability finding was also discovered to be a benefit enjoyed by the SMEs who use Cloud Computing. The conclusion is that there is a relationship between Cloud Computing, Small and Medium Enterprise businesses and the challenges they face in their business environment. To address the identified business challenges, technology adoption studies by Gumbi & Mnkandla (2015), Carcary, Doherty & Conway (2014), Lacovou et al (1995), Mohlomeane & Ruxwana (2014), Kshetri (2010), BMI Research (2018), Conway & Curry (2012), Li, Zhao & Yu (2015), Wernefeldt (1985), Schindehuitte & Morris (2001), Tornatzy & Flesher (1991) were reviewed. From these publications, the Technology, Organisational and Environmental (TOE) was found to be relevant and of interest for use in answering the main research question. This study developed the Cloud Adoption Framework which is the anchor of all SME challenges. Key study contribution is that the TOE model, which is predominantly used to understand the determinants of technology adoption like various industry applications, infrastructure innovations etc., are now used to address specific challenges that have contributed in the high failure rate of SME business. This is the first-time TOE model has been used to align with key SME challenges that contribute to firms’ failure. Specific technology across Software, Infrastructure and Platform services models are recommended for use by SMEs to ensure challenges are mitigated and improve the chances of survival for SMEs operating in South Africa. By following the recommended Cloud Adoption Framework, SMEs should be able to navigate the complexities brought about by the tough operating environment and also the technologies available to address those challenges. All six challenges have solutions in Cloud Computing and SMEs are educated on these solutions and also how to access these on a pay as you use model of consumption.Business ManagementD.B.L

Cloud Manufacturing Model to Optimise Manufacturing Performance

Being predicted as the future of modern manufacturing, cloud-based manufacturing has drawn the attention of researchers in academia and industry. Researches are being done towards transforming every service in to cloud based service-oriented manufacturing mode in the manufacturing industry. There are many challenges that would arise when travelling towards this paradigm shift which is being addressed by researchers, but there are very few researches that concentrate on the elastic capability of cloud. Elastic capability makes this paradigm unique from all the other approaches or technologies. If elasticity is not achievable then the necessity of migrating to cloud is unnecessary. So, it is imperative to identify if at all it is necessary to adopt cloud-based manufacturing mode and discuss the issues and challenges that would arise to achieve elasticity when shifting to this emerging manufacturing paradigm. This research explores the importance of adopting cloud-based manufacturing mode to improve manufacturing performance based on the competitive priorities such as cost, quality, delivery and flexibility and proposes an elasticity assessment tool to be included in the cloud-based manufacturing model for the users to assess the challenges and issues on the realisation of elasticity on the context of manufacturing, which is the novelty of this research. The contribution to knowledge is a clear understanding of the necessity of cloud based elastic manufacturing model in the manufacturing environment for the manufacturing SMEs to gain a competitive advantage by achieving the competitive priorities such as low-cost, high-quality, and on-time delivery. Finally, the research suggests the best combination of manufacturing parameters that has to be emphasised to improve the manufacturing performance and gain a competitive advantage

Exploring ERP systems adoption in challenging times. Insights of SMEs stories

This paper offers a study of real success experiences of SMEs, in relation to the motivations of selection and implementation of Enterprise Resource Planning (ERP) and its benefits that also allow the confrontation with theoretical concepts, based on reviewed literature. We followed a qualitative approach based on in-depth content analysis of SMEs online stories included in the ‘Customer Stories’ directory available on the SAP website using the R language to scrape data and statistical analyses. The findings provide evidence that the use of ERP, for managing SMEs, is constructive to their success and improves the quality of their decision-making processes. Although the technologies implemented by SMEs were characterized by their specialisation and adaptation, SAP Business One is the leading solution, without significant differences by sector compared to Europe. They also reveal that the effectiveness of implementing ERP is intrinsic to the reputation of the software vendors and the high professionalism of the partners. Additionally, the results indicated the short-term approach of SMEs when implementing this type of tool, takes precedence over the strategic and economic benefits. Furthermore, the empirical analysis supports the association of some motivational factors of ERP implementation and selection with characteristics of the organisations, such as activity and size.Funding for open access charge: Universidad de Huelva / CBU

e-Leadership through strategic alignment: an empirical study of small- and medium-sized enterprises in the digital age

Small- and medium-sized enterprises (SMEs) play an important role in the European economy. A critical challenge faced by SME leaders, as a consequence of the continuing digital technology revolution, is how to optimally align business strategy with digital technology to fully leverage the potential offered by these technologies in pursuit of longevity and growth. There is a paucity of empirical research examining how e-leadership in SMEs drives successful alignment between business strategy and digital technology fostering longevity and growth. To address this gap, in this paper we develop an empirically derived e-leadership model. Initially we develop a theoretical model of e-leadership drawing on strategic alignment theory. This provides a theoretical foundation on how SMEs can harness digital technology in support of their business strategy enabling sustainable growth. An in-depth empirical study was undertaken interviewing 42 successful European SME leaders to validate, advance and substantiate our theoretically driven model. The outcome of the two stage process – inductive development of a theoretically driven e-leadership model and deductive advancement to develop a complete model through in-depth interviews with successful European SME leaders – is an e-leadership model with specific constructs fostering effective strategic alignment. The resulting diagnostic model enables SME decision makers to exercise effective e-leadership by creating productive alignment between business strategy and digital technology improving longevity and growth prospects

Competitive advantage during industry 4.0: the case for South African manufacturing SMEs

A research report submitted to the Faculty of Engineering and the Built Environment, Uni- versity of the Witwatersrand, Johannesburg, in partial fullfilment of the requirements for the degree of Master of Science in Engineering. Johannesburg, May 2018With the expected disruption of industry 4.0 and the current challenges that SMEs face in South Africa, there is an increasing threat that SMEs will lose any competitive advantage they currently have. This exploratory study investigates how South African manufacturing SMEs can remain competitive during the fourth industrial revolution. Data, in the form of current literature, was analysed using thematic content analysis. From the analysis process, 8 emergent themes were used to organise the results of the study. Notable findings towards generating competitive advantage included: The location of SMEs within clusters, collaboration with disruption leaders, the sharing of outcomes across the value chain, the shift of business models towards a service and software orientation, the use of data driven insights to find and capture high margin markets and the increased effectiveness of labour through technology use. The study also found that the use of the IoT and cloud computing can significantly reduce infrastructure requirements and promote a competitive advantage.MT 201

Industry 4.0 for SMEs

This open access book explores the concept of Industry 4.0, which presents a considerable challenge for the production and service sectors. While digitization initiatives are usually integrated into the central corporate strategy of larger companies, smaller firms often have problems putting Industry 4.0 paradigms into practice. Small and medium-sized enterprises (SMEs) possess neither the human nor financial resources to systematically investigate the potential and risks of introducing Industry 4.0. Addressing this obstacle, the international team of authors focuses on the development of smart manufacturing concepts, logistics solutions and managerial models specifically for SMEs. Aiming to provide methodological frameworks and pilot solutions for SMEs during their digital transformation, this innovative and timely book will be of great use to scholars researching technology management, digitization and small business, as well as practitioners within manufacturing companies

Keeping it Agile: The Internationalisation Decision for The Agile Executive

This case focuses on The Agile Executive, a company looking for new market opportunities to expand their business in several possible European markets. This case is also an exercise case for students to practice their knowledge from the perspective of strategic management, branding, marketing & sales, conducting market research and the development of feasible marketing entry strategies, all based on clear use of robust criteria, aligning with the core competences, resources and capabilities of the organisation. This case can be divided into sub-cases that could focus on answering the questions of how to enter or expand in a target European market, which market to enter, how to position and brand the organisation, all based on a clear strategic analysis of the core competences of The Agile Executive